1.1
A book containing copies of all
documents pertaining to a piece of
property (or it's owners) located in
the county courthouse. The abstract
is certified by the abstract company
which is a quasi-governmental company
authorized to verify the contents of
the abstract are complete and
accurate. The abstract is provided to
an attorney for their opinion of good
title and is needed before most loan
companies will fund loans
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2.1
A
mortgage loan whose interest rate
fluctuates according to the movements
of an assigned index or designated
market indicator--such as the weekly
average of one-year US Treasury
Bills--over the life of the loan. To
avoid constant and drastic
fluctuations, ARMs typically limit
how often and by how much the
interest rate can vary.
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3.1
A timetable for payment of a home
loan. An amortization schedule shows
the amount of each payment applied to
interest and principal and the
remaining balance after each payment
is made.
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4. ANNUAL
PERCENTAGE RATE (APR)
4.1
The actual cost of borrowing money,
expressed in the form of an annual
interest rate.
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5.
APPRAISED
VALUE
5.1 The
dollar figure for a property's
estimated fair market value, based on
an appraiser's knowledge, experience,
and analysis of the property and
comparable properties near by.
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6.
ASSUMPTION
OF MORTGAGE
6.1
The buyer assumes liability for an
existing mortgage held by the seller,
subject to approval by the lender
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7.
BALLOON
PAYMENT
7.1
The final lump sum
payment that is made at the end of
the shorter term for a balloon loan
and pays the loan in full.
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8.
CAVEAT
EMPTOR
8.1
Let the buyer beware. The buyer must
examine the goods or property and
proceed at the buyer's own risk.
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9.1
These are expenses incurred over and
above the price of the property, by
buyers and sellers when transferring
ownership of property. They are of
two types, non recurring and pre
paid. The former costs are incurred
on items paid just once as a result
of buying property or obtaining a
loan. Pre-paid are costs which are
recurring such as property taxes and
homeowners insurance. A lender
usually gives the borrower an
estimate of the total costs on Good
Faith within three days of receiving
a home loan application. Closing
costs normally include an origination
fee, an attorney's fee, taxes, an
amount placed in escrow, and charges
for obtaining title insurance and a
survey. Closing costs percentage will
vary according to the area of the
country.
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10.1
Any mortgage that is not insured or
guaranteed by the federal government.
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11.1buyer
is serious about A deposit given to
the seller to show that a prospective
buying the property.
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12..1
The holding of documents and money by
a neutral third party prior to
closing; also, an account held by the
lender into which a homeowner pays
money for taxes and insurance.
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13.1 A
consumer protection law that sets up
a procedure for correcting mistakes
on one's credit record.
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14.1
The highest price an informed buyer
will pay assuming there is no unusual
pressure to complete the purchase.
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15.1 Federal
National Mortgage Association (FNMA)
is a privately owned corporation
created by Congress to buy mortgage
notes from local lenders and provide
guidelines for most lenders to use to
qualify borrowers.
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16.1
A mortgage that is insured by the
Federal Housing Administration.
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17.1
Insurance to protect the homeowner
and the lender against physical
damage to a property from fire, wind,
vandalism, or other hazards.
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18.1
An insurance policy that combines
liability coverage and hazard
insurance.
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19.1
A type of insurance that covers
repairs to specified parts of a house
for a specific period of time.
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20.1
A description of a specific parcel of
real estate which is acceptable to
the courts in that state, and which
allows an independent surveyor to
locate and identify it. Usually it
uses one of the following methods:
government survey, metes and bounds
or recorded plat (lot and block
number).
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21. MANAGING
BROKER
21.1 A Broker of Record may
often oversee the operations of many
offices operating as part of the same
business. Each individual office is
also run by a broker, often referred
to as the "managing broker"
for that office.
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22. MORTGAGE
22.1 An instrument in
writing duly executed and delivered
that creates a lien upon real estate
as security for the payment of a
specified debt, which is usually in
the form of a bond.
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23. ORIGINATION
FEE
23.1 A fee paid to a loan
broker for processing a loan
application to offset overhead costs;
it is stated as a percentage of the
mortgage amount, or points
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24. PRIME
RATE
24.1 The interest or discount
rate charged by a commercial bank to
its largest and strongest customers.
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25. PTI
25.1 Stands for principal,
interest, taxes, and insurance -- the
components of a monthly mortgage
payment.
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26. POINTS
26.1 A one-time charge by the
lender to increase the yield of the
loan to the investor; a point is one
percent of the amount of the
mortgage. Paying points reduces
the rate of the mortgage.
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27. REALTOR
27.1 A real estate licensee
using the term REALTOR®
belongs to the NATIONAL ASSOCIATION
OF REALTORS® and
subscribes to a Code of Ethics
that holds their behavior to a higher
standard than Ohio law requires of
them. Every REALTOR®
holds a valid Ohio real estate
license, but not everyone who holds
that license is a REALTOR®.
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28. SELLER
AGENCY
28.1 A business relationship
where the licensee enters into a
written agreement to work only for
the seller in the transaction. Seller
agents are loyal to the seller and
act in the seller's best interest.
Unless designated agency is selected,
any licensee employed by the broker
may also represent the seller. For
more details, see the explanation
given in the Consumer Notice.
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29. TITLE
SEARCH
29.1 A highly detailed search
of the document history of a property
title for the purpose of identifying
any/all legal encumbrances to the
property prior to title transfer to a
new owner.
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30. VA LOAN
30.1 The Department of
Veterans Affairs has made guaranteed
mortgages available, through banks
and other lending institutions, to
active military personnel, veterans
or spouses of veterans who died of
service-related injuries.
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